I've got that bad allocation error too, but my drive is ntfs 39GB. The log is a bit large.
I've tried chkdsk /f but it cant determine the volume state and it stops.
Without deep scan the error is "Unable to read MFT". With Deep scan, it finds 24 files up to 50%, then +13000 files, and at 100% it begins allocating a huge amount of memory till that bad allocation.
Recuva_log_1_24_399__18_3_2009_10_3_.txt
Recuva_log_1_24_399__18_3_2009_10_3_.txt